Steps banks should take to reduce pain of laying off workers

As Kenyan banks continue to adjust their operations following the enforcement of the law capping loan interest rates in September at 14 per cent, a number of them have resorted to job cuts in a bid to reduce costs, with the latest being First Community Bank.

“The board and I have been closely monitoring our implementation of the transformational agenda and we have concluded that operational costs need to be further reduced. Unfortunately, this means that the bank will have to reduce staff costs going forward,” said Fazal M. Saib, the CEO of the bank in a memo sent to the employees.